It is expected to grow by 7.7% in volume and 15.9% in value

Pressure on global trade and shipping with economic recovery

The economic recovery led to an increase in the cost of imports, especially shipping.

archival

Global trade recorded a significant improvement, which is supposed to be greater during the current year, driven by the economic recovery that led to an increase in the cost of imports, especially maritime transport, according to a study conducted by the "Euler Hermes" group published yesterday.

The study indicated that over the course of the year, international trade is expected to register a growth of 7.7% in volume and 15.9% in value after declining 8 and 9.9%, respectively.

She explained that "the reopening of the economies in Europe and the United States leads to a strong increase in imports from Asia to these two regions, which strongly supports global trade in terms of volume."

In addition to the increase in demand, companies are facing the need to replenish stocks that were largely depleted last year when trade almost came to a halt due to the pandemic.

The study showed that as a result, the freight transport sector, especially sea freight, is facing difficulty in meeting the needs, which leads to a shortage of containers and an increase in transportation costs, and consequently an increase in the value of trade exchanges that exceed the increase in their volume.

She pointed out that between 60 and 65% of containers have been facing delays in delivery since the beginning of this year, compared to about 20% before the crisis.

And “Euler Hermes” reported, “The sudden increase in prices forces companies to change their inventory management strategies, and therefore they move from the (on time) model to the (if something happens) model,” which obliges them to hastily purchase intermediate goods to protect themselves. of possible new price increases.

European companies in particular are facing difficulties because their stocks were lower than those of their American or Asian competitors.

Hardest hit are sectors where inventory management is more difficult, such as automobiles and textiles.

• 65% of containers face delays in delivery since the beginning of 2021.

Follow our latest local and sports news and the latest political and economic developments via Google news